Sarah's Organic Soap Company makes four kinds of organic liquid soap: regular, lavender, citrus, and tea tree.The demand for the four scents are 150, 120, 75, and 50 kg per hour respectively. Sarah's production processcan produce any soap at the rate of 450 kg per hour, but 1.5 hours are needed to switch between scents. Duringthose switchover times, the process doesn't produce any soap. Sarah wants to choose a production schedulethat (i) cycles repeatedly through the four scents, (ii) meets the required demand and (iii) minimizes the amountof inventory held.Sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kg of palm oil perday on average. The supplier charges a $60 delivery fee per order (which is independent of theorder size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5days per week. If Sarah wants to minimize inventory holding and ordering costs, how much palm oilshould she purchase with each order (in kg)? (Round your answer to the nearest wholenumber.)5,126 kg5,2265,3265.426

Sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kg of palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5 days per week. If Sarah wants to minimize inventory holding and ordering costs, how much palm oil should she purchase with each order (in kg)? (Round your answer to the nearest whole number.)

Sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kg of palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5 days per week. If Sarah wants to minimize inventory holding and ordering costs, how much palm oil should she purchase with each order (in kg)? (Round your answer to the nearest whole number.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Mac-in-the-Box, Inc., sells computer equipment by mail andtelephone order. Mac sells 1,200 flat-bed scanners per year.Ordering cost is $300, and annual holding cost is 16 percentof the item’s price. The scanner manufacturer offers thefollowing price structure to Mac-in-the-Box: What order quantity minimizes total annual costs?
www.www A toy manufacturer uses approximately 40000 silicon chips annually. The chips are used at a steady rate during 350 working days per year. The annual holding cost is $4 per chip, ordering cost is $145, and lead time is 5 days. Determine the annual cost saving if company uses optimal EOQ (part a) instead of current order quantity of 3000 units (Round your answer to 1 decimal places)
Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile tires. The yearly demand of a particular brand of time is about 8,888 units per year. JTP purchases these tires from a supplier. The ordering cost is $124 per order and the holding cost is $19 per tire per year. The supplier always deliver the shipment within 6 days after receiving a replenishment order from JTP. The company operates 250 days per year. Assume EOQ model is applicable. What is the optimal annual inventory cost for JTP? Use at least 4 decimal places.
SF, owner of the kebab houses, uses 20 pounds of mince each day in preparing meatball. Order costs for mince are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the mince itself costs $3.00 per pound. At what point should she reorder mince? Select one: 20 pounds remaining 60 pounds remaining 100 pounds remaining 80 pounds remaining 40 pounds remaining
Allen Enterprises uses a continuous-review inventory control system for one of its most popular computer games. The firm operates 50 weeks in a year with an average lead time of 9 weeks. The annual demand is 12,000 games, with a standard deviation of 245 games. Ordering Costs are $30, with Holding costs per game of $38 per year. What is the economic order quantity for this item? If Allen Enterprises wants to provide a 95-percent cycle-service level, what should be the reorder point?
A gift shop sells 400 boxes of scented candles a year. The ordering cost is $50 for scented candles, and holding cost is $25 per box per year. What is the economic order size for scented candles?
Salam's company expects its production of pipes will require 600,000 tons of aluminum over its planning period. Demand for pipes products is stable over time. Ordering costs amount to an average of $15.00 per order. Holding costs are estimated $1.4 per ton of aluminum. Find the following: Total cost of holding inventory at (EOQ)is Answer
Please do not give solution in image formate thanku. Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these subcomponents at a rate of 12,500 per year (of 250 working days). Holding costs are $22 per item per year, and ordering costs are $32 per order. a) What is the economic production quantity b) how many production runs will be made each year c) what is the max inventory level d) what percentage of time will the facility be producing components e) what is the annual cost of ordering and holding inventory
If Sarah wants to minimize inventory holding and ordering costs, how much Palm oil should she purchase with each order (in kgs)?
An engineer has decided to pursue ordering option for a particular item on an as needed basis as oppose to stocking it. To stock the item, inventory inspection costs $500 annually. The cost to place an order is estimated at $125. For the ordering option, there is an additional $85 special delivery charge per order. Demand for the $20 item is 2,300 units per year. The annual holding cost rate is 40% of the item price. Calculate range of the order quantity that will make it economical to order this item every time. If the engineer decides to stock the item what is the order quantity that is economical.
What are Wyreboard's minimum costs of ordering and holding inventory? Please answer it in good form. Thank you
Please do not give solution in image format thanku